CandleFocus

Ethereum’s $2,500 Breakout Spurs Dormant Coin Activity, Exchange Deposits Soar

Author: Content Editor
The price of Ethereum has breached the $2,579 resistance level, leading to an increase in older, less active coins being traded. These coins are making their way to cryptocurrency exchanges, causing an uptick in netflow onto these platforms. This influx of coins onto exchanges may put downward pressure on Ethereum's price and pose a risk to its recent gains. The broader market sentiment has shifted from neutral to greed, and Ethereum's price has jumped 4% in the past 24 hours. The spike in Ethereum's age consumed metric indicates renewed activity from long-term holders, but the increase in netflow volume suggests that a significant portion of these coins have been deposited onto exchanges. This indicates more selling than buying activity. If selling continues to gain momentum, Ethereum's price may fall towards the $2,579 resistance level, with further potential support at $2,320. However, if selling pressure weakens and new demand enters the market, the bearish projection is invalidated, and Ethereum's price may climb towards the next major resistance at $3,102.

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